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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
The won is weaker in early trade on Wednesday, the rate last up 8.20 at 1108.10 after an unexpected bout of greenback strength amid higher US yields. The pair dropped as low at 1097.00 in the early part of the Asia-Pac session yesterday, but ground higher into the close.
- South Korea's finance minister said Tuesday the government is seeking to submit an extra budget bill in early March in a bid to provide targeted support to merchants and businesses hit hard by the pandemic. There is still no indication of increased issuance size to finance the extra budget bill.
- The won is the worst performing EM currency against the USD so far in 2021, fund flows are being suggested as part of the reason behind the weakness. According to data from Bloomberg domestic investors bought a net $6.2 billion of overseas bonds and stocks in January, a record in data from the Korea Securities Depository dating back to 2011. Foreign money managers also offloaded a net $5.3 billion of local stocks in the last week of January, the biggest outflow for the period since 1999. Some of this outflow is attributed to tighter real estate regulations imposed recently limited domestic investment options.
- A weaker won is often celebrated by exporters, but their "pain threshold" is said to be around 1133, which is still some way below current levels of the won at around 1108. The won hasn't been around 1133 since early November.
YTD Spot Returns Asia
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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